Kinder Morgan Interstate Gas Transmission LLC

Second Revised Volume No. 1-D

Effective Date: 12/28/1999, Docket: GT00- 19-000, Status: Effective

Original Sheet No. 55 Original Sheet No. 55 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

26.3 TRANSITION COST RECOVERY MECHANISM

a. In addition to the other costs included in the rates set

forth in this FERC Gas Tariff for Rate Schedules FT, NNS,

and IT, Shipper shall, beginning one (1) month from

Commission authorization in a Section 4 proceeding, recover

from Customers under Rate Schedules FT, NNS and IT its Gas

Supply Realignment Costs in accordance with the procedures

set forth in this Section 26.3. Gas Supply Realignment

Costs are those costs attributable to realigning Shipper's

gas supply contracts as permitted by Order No. 636, et al.

including but not limited to Pricing Differential costs.

Pricing Differential costs are costs incurred beginning one

(1) month from the implementation date that are equal to 1)

the difference between the contract price under List A and

List B Contracts and the higher of (a) the price paid by a

third party purchaser from time to time for gas quantities

available for sale attributable to such Contracts or (b) a

floor price equal to the applicable GSR Index Price 2) times

the quantity sold. Transporter will continue to negotiate

to buyout, buydown, assign, modify or settle the terms and

conditions of the Contracts from time to time so as to

result in the minimization of transition costs without

regard to continuation of any other Contract. In addition,

within seven (7) days after receipt of a final Commission

order in Docket No. RS92-19-000, Transporter will file under

seal List A and List B. Contracts under List A and List B

will be available for review in Lakewood and Washington upon

execution of an appropriate protective and non-disclosure

agreement.